LS Eco Energy Collaborates with Donghae City to Establish Rare Earth Logistics Hub

Sangho Lee CEO "China Rare Earth Export Controls... Interest in De-China"

LS Eco Energy announced on the 5th that it has signed a 'Donghae Port Port-Type Free Trade Zone Investment Intention Memorandum of Understanding (MOU)' with Donghae City. The company plans to establish a rare earth logistics hub in Donghae City.

Lee Sang-ho, CEO of LS Eco Energy (right), attended the LS Eco Energy Value-Up Day on May 30.
[Photo by Moon Chae-seok]

Donghae City has designated the Songjeong-dong and Naan-dong areas, totaling 333,000㎡, as the hinterland complex and port-type free trade zone. It plans to offer benefits such as low rental fees and tariff suspensions to companies.

LS Eco Energy intends to utilize Donghae Port as a rare earth logistics hub if Donghae City is designated as a free trade zone.

Lee Sang-ho, CEO of LS Eco Energy, said, "Due to China's export controls on rare earths, interest in 'de-China' supply chains such as Vietnam and Australia is increasing," adding, "We will strengthen cooperation with Donghae City to expand our rare earth business."

LS Eco Energy has signed a contract to secure rare earth oxides with a Vietnamese mining company for the first time in Korea and is building a rare earth permanent magnet supply chain with its parent company LS Cable & System. In the first quarter, the company recorded its highest-ever operating profit (9.6996 billion KRW) through expanded exports of ultra-high voltage cables to North America and Europe.

A company official stated, "We expect to achieve the highest-ever annual performance."